Capital ________ are American purchases of foreign assets, and capital ________ are foreign purchases of American assets
A) inflows; outflows
B) inflows; inflows
C) outflows; outflows
D) outflows; inflows
D
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Suppose a perfectly competitive market is in long-run equilibrium. If there is a permanent increase in demand,
A) at least in the short run, some firms will increase their output. B) at least in the short run, the price will increase initially. C) new firms will enter the market. D) All of the above answers are correct.
Included in government expenditures are government purchases and transfer payments
Indicate whether the statement is true or false
Intraindustry trade refers to
A) international trade of products made within the same industry. B) international trade of products made across different industries. C) trade that occurs as a result of comparative advantage. D) the exchange of non-similar items. E) trade that occurs mostly within developing countries.
A rightward shift of the demand curve will lead to an
A) increase in equilibrium price. B) excess demand at the old equilibrium price. C) increase in quantity supplied. D) All of the above.